Commissioner of Customs Export Vs Mayank Gupta (Delhi High Court)
The Delhi High Court, in the case of Commissioner of Customs Export vs. Mayank Gupta (Customs Appeal No. 109/2025), dismissed an appeal filed by the Customs Department seeking to enhance the penalty imposed on Mayank Gupta, a freight forwarder, in a case involving the illegal export of Red Sandalwood (Red Sanders). The Customs Department sought to impose an additional penalty under Section 114AA of the Customs Act, 1962, on top of the $\text{Rs. 10 lakh}$ penalty already imposed under Section 114. The court ultimately found that the existing penalty was sufficient due to the respondent’s limited role in the smuggling chain.
Background of the Case
The case originated from a specific intelligence regarding the illegal export of Red Sanders, an endangered species recognized under the CITES international convention, which requires a valid export certificate. Customs intercepted consignments that were found to contain Red Sandalwood, despite being fraudulently declared in supporting documents as “household goods.” The investigation revealed a chain of individuals and entities involved in preparing the fraudulent documentation. The original Order-in-Original passed by the Adjudicating Authority in 2019 confirmed the confiscation of the $1103.1 \text{ Kgs}$ of Red Sanders and imposed penalties on multiple individuals for their respective roles.
